At a probably royalty of $1.75 per record, that gives the Stones a kind of annuity amounting to around $2 million a year even if they quit work.
While other chiefs spoke about the terms of mineral rights and annuity amounts, Buffalo discussed treatment of the mixed-blood traders, stating: Once the terms were agreed to, Buffalo marked and was recorded as Pe-zhe-ke, head of the La Pointe delegation.
Today holders of the Victoria Cross or George Cross are entitled to an annuity, the amount of which is determined by the awarding government.
The trust essentially pays him a 5 percent annuity on the amount, and when he and his wife die the money will go to the family foundation.
In fact, you can take out only a portion of your immediate annuity -- the amount you need to get through your hardship -- and save the rest for later use.
As with many annuities, a substantial amount of the payment is deemed to be return of capital for tax purposes, so the amount being paid tax free is minimal.
Whether the economy is good or bad, an annuity pays a minimum amount of income every month.
You may have to put a large part of your nest egg into the annuity to receive the amount you need to live on, but you know it will be there.
"Meanwhile, I feel pretty bad about the seemingly small amount of annuity income that large balance would purchase and about the prospect of handing it over to an entity that will keep it all if I'm hit by the proverbial bus after walking out of their office".
The SEC also explains that should an insurer default, the State Guarantee Fund will step in and "attempt to find a replacement insurer for your contract, or will offer insurance on a given amount of annuity investment (usually up to $100,000, but greater in some states).".
